This blog features observations from Randy Turner, a former teacher, newspaper reporter and editor. Send news items or comments to rturner229@hotmail.com

Tuesday, March 26, 2013

GateHouse Media CEO: Bankruptcy among options being considered

The Big Nickel is not only a GateHouse Media publication, but the price the company's stock closed at Monday following word that bankruptcy might be on the horizon.

The company lost one-third of its stock value during the day, dropping from six cents to four cents per share before rallying to close at five.

The Wall Street Journal quoted the company's CEO, Michael Reed, as saying that different strategies are being looked at to tackle the ticking time bomb that is the company's billion dollar plus debt.

GateHouse's note is due next year and since the company continues to lose money quarter after quarter, it is obvious GateHouse is not going to be able to pay what it owes.

In addition to a Chapter 11 bankruptcy, GateHouse is exploring attempts to have its debtors settle for 33 cents on the dollar.

Fortunately for Reed and other top officials at GateHouse, the company's overwhelming debt has not kept its board of directors from handing them hefty bonuses year after year, including $1,495,000 in bonuses in 2012, with Reed receiving $800,000 of that total.

In addition to the Big Nickel, GateHouse Media owns the Carthage Press, Neosho Daily News, and Pittsburg Morning Sun in this area.

About Me

I am a former teacher in the Joplin and Diamond, Missouri, school districts. Before entering the teaching field, I spent 22 years as a reporter and editor for various Southwest Missouri newspapers. I have published three novels, Small Town News, Devil's Messenger, and No Child Left Alive, and seven non-fiction books, The Turner Report, Newspaper Days, Silver Lining in a Funnel Cloud, Greed, Corruption, and the Joplin Tornado, 5:41: Stories from the Joplin Tornado, Spirit of Hope: The Year After the Joplin Tornado, Scars from the Tornado and Let Teachers Teach.

TURNER REPORT PRIVACY POLICY

This blog does not share personal information with third parties nor do I store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.

You can turn off the use of cookies at anytime by changing your specific browser settings.

I am not responsible for republished content from this blog on other blogs or websites without my permission.

This privacy policy is subject to change without notice and was last updated on May 10, 2014. If you have any questions feel free to contact me directly at rturner229@hotmail.com